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Fed up that Canada Post hasn’t paid out a multi-million-dollar pay equity award, the union representing its clerical workers is seeking a charging order, which is similar to a lien, against a postal building in Ottawa.

According to documents filed with the Federal Court, the Public Service Alliance of Canada is asking that a judge enforce a Canadian Human Rights Tribunal pay equity decision, upheld by the Supreme Court of Canada in 2011.

The union is asking for the order against a Canada Post facility on Lancaster Rd. in southeast Ottawa, valued at $3.8 million in 2010. The union had meant to put the charging order against Canada Post’s Ottawa headquarters on Riverside Dr., but the legal description filed in court documents was for the other property.

Both Canada Post and the union declined to comment on the legal wrangling because the case, which dates back three decades, is before the courts.

Seeking a lien or charge is a legal step that individuals or organizations can take to secure a bad debt.

A Federal Court hearing is scheduled for April, where Canada Post is expected to argue that as a crown corporation, a charging order cannot be placed against its property.

It also argued in its written response that the Federal Court should not have jurisdiction. Instead, a dispute over how much interest should be paid must be settled by the human rights tribunal, which made the original ruling, according to a court filing. However, one of the two tribunal members has died, so Canada Post earlier indicated another individual should be appointed to hear the case.

The complaint dates back to 1983, filed on behalf of 2,300 clerical workers. The union argued the mostly female clerical employees were doing comparable work to the mostly male letter-sorters and carriers, but earned substantially less.

The battle raged for years. In a 2005 decision, the tribunal sided with the union and the mostly female employees, ordering that Canada Post pay additional wages to close the gap, covering the period from 1982 to 2002, plus pre-judgment and post-judgment interest.

The crown corporation appealed the decision, and won at two levels before the Supreme Court of Canada ruled unanimously in the union’s favour in 2011, a mere 20 minutes after hearing oral arguments.

Estimates have pegged the award at $150 million, though with interest it could be as much as $250 million. Canada Post recorded an undisclosed charge in its 2011 financial statements for the payout.

Though the two sides tried to negotiate a deal last year over the outstanding issues, they could not agree on interest.

The union argues that interest should be paid on 100 per cent of the payout, while the company wants to pay it on only 80 per cent of the total, arguing it is generous considering employees would have had taxes and other deductions, a reduction of 30 per cent to 35 per cent of gross wages.

In its court filing, Canada Post argues that “eligible employees should not be paid interest on monies they would never have actually received, as such a payment represents a windfall and places an unfair additional financial burden” on the company.

Canada Post has 60 people working full-time to find and review tens of thousands of documents to determine who is eligible.

The union had previously estimated about 6,000 people are owed payments, but in court documents, Canada Post said it has identified more than 15,000 individuals. However, issues remain over eligibility, wage gap methodology, how to find former employees, and even method of payment.

In court documents, the union cites the example of an employee, hired in 1993 and promoted in 1999 but moved out of the union classification in 2000. The company calculated that the individual is owed $20,485.60 in principal and $9,605.68 in interest. The union calculates interest at $12,007.10.

Because the case has dragged on for so long, last October the union asked Canada Post to begin writing cheques with up to 80 per cent interest so that their members could get their money, saying the remaining interest could be settled at a later point.

Canada Post declined, arguing that it wanted all of the outstanding issues resolved.

Cornish said part of the reason that the case is so complicated is because Canada Post has fought it all along.

“In my view, employers need to be keeping track,” she said. “They have been in this proceeding for a very long period of time, knowing they had a potential liability.

“Therefore, they had to protect and have the data available and ready to make the payment,” Cornish said.

Timeline of pay equity case

1983 -- Public Service Alliance of Canada files pay equity complaint on behalf of clerical workers

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